My last update in February painted a similar picture to what we are still experiencing in the market at present – there’s plenty happening but lots of hesitation from mid to senior level candidates to move roles, and companies are unwilling to make non-critical hires. With instability in the Middle-East, varying news around the state of the UK economy and persistent legislative changes, there definitely seems to be a reluctance for businesses to invest in growth whilst others push on and continue their success and expansion.

“Job hugging” is becoming more and more prominent

A fairly recently coined term, the concept is that employees are holding tightly onto their current jobs due to (perceived) market instability. We mainly hear of this at mid to senior level where career moves are deemed to be riskier due to there being less opportunities available should the move not work out. They want to move but either the roles don’t exist, or the appetite for risk in moving jobs just isn’t there. The knock-on effect is that those waiting beneath for opportunities to arise have their career paths stifled, and it is typically this level taking to the market, seeking new jobs and securing them quickly. At some point something will have to give - Employees will only hold on for so long! Will we see The Great Resignation Part 2? Maybe at some point soon. Although at present Trump's actions and this Labour government are doing their best to dampen any desire for investment and growth in the UK.

Companies are turning to Temps/Interim staff to plug gaps

We’ve definitely seen an uplift in the interim market over recent weeks. Temps are being utilised to take on projects and avoid permanent hiring – potentially due to the reluctance to increase headcount but also with the recent changes to employment law, SSP etc. Offering a great “try before you buy” option for businesses, our experienced Temporary Division have an amazing track record in successfully placing high calibre temps who often end up securing longer-term opportunities with our clients.

Clients are struggling with new direct hires and getting them to “stick”

Over the course of 2026, businesses are reporting that candidates that have been hired directly seem particularly willing to start a new role and not see out their probation period. Either through a willingness to hit the job market again quickly to secure a new role or “better” opportunities being presented after they’ve secured or started a new position, or due to poor performance and reliability. An advert will typically secure a high volume of response, but identifying and securing the good candidates is difficult and time consuming (along with aligning expectations and delving into candidate motivators!).  Actually getting the candidate through the door on day 1 and passing through their probation is another challenge altogether. It might not be a new phenomenon, but this is probably the worst hiring Companies have experienced this distinct lack of commitment.  Direct hires have no guarantees and the extra cost on using a Recruiter who can put guarantee periods/rebate structures in place, actually gives peace of mind and a Plan B if things don't go right first time.

Client and candidate mis-alignment on salaries

Over the last couple of years there has definitely been a post-Covid adjustment, where (sometimes) over-inflated salaries have taken a backward step and candidates are often having to consider lower salaries for the same roles that they have previously undertaken. Likewise, hiring companies are having to adjust to ever-increasing National Minimum Wage levels, inflation and rising cost of living in order to stay competitive in retaining and attracting staff. This has led to lots of disparity and confusion for both client and candidate expectations. We are having more and more clients reach out to us to benchmark roles and ask what they need to pay to find suitable new employees. Clients advertising roles significantly under market rate are experiencing the issues I mentioned above around retention and getting candidates to "stick". 

Our 2026 Salary Guide is now available for any businesses who would like to check their salaries. You can request a free copy here - https://www.thinksr.com/2026-salary-guide/ 

If you would like to discuss your hiring requirements with us, or find out more about the current market, you can contact Chris - [email protected] - or call and speak with the team on 01442 600100

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